12 October, 2005
The President's Advisory Panel on Federal Tax Reform
1440 New York Avenue NW
Suite 2100
Washington, DC 20220
Dear Panel Members,
I strongly recommend that you reconsider HR25, Congressman John Linder’s Fair Tax
proposal. It is clear from the panelists’ comments and from the reform proposals being floated in
the media that you have failed to grasp the mandate given by The President, and have failed to
comprehend the Fair Tax Plan.
HR25 overwhelmingly beats any other proposal for simplifying Federal tax laws and reducing
compliance costs associated reporting, collecting, and administering the Federal Income Tax.
As for sharing the burdens and benefits, HR25 is the only proposal that eliminates the tax
burden on the poor while progressively taxing higher income individuals. Shifting some of the
tax burden to corporations with the Advisory Panel’s suggestion to increase corporate taxes is a
farce, since we all know that corporate taxes are ultimately paid by individuals in the cost of
goods and services purchased from these corporations.
HR25 also produces tax revenue from untapped sources such as the ‘underground/cash’
economy that is currently untracked by the IRS. Foreign nationals and tourists become another
revenue source, since their purchases in the United States result in tax revenue for our Federal
Government.
I can think of no better way to stimulate investment and saving that to remove the punitive
Federal Income Taxes levied on saving and investment income. Under HR25, all individual
earnings including wages/salaries, tips, interest, and dividends belong to the individual. Can you
imagine what individuals would do with the extra money in their paychecks if the +/-30% now
withheld under the current Federal Income Tax system is instead passed along to the wage
earner? They will spend, save, or invest that money….stimulating economic growth and job
creation.
Finally, HR25 will create a tax haven for corporations, reversing the current trend to relocate
corporate headquarters in other countries to escape the U.S. tax system. Bringing companies
home to the U.S. will again stimulate the economy and create jobs.
HR25, The Fair Tax proposal, is well thought-out, easily understandable, and has been
thoroughly researched. Read HR25 and reconsider this option for your recommendations to The
President. If HR25 doesn’t make sense, read the book. Make a bold and sweeping
recommendation instead of pulling a sting here and twisting a knob there in the current,
incomprehensible Federal Tax Code.
Regards,
Thomas Mattison